S&P cuts MAI

S&P said it downgraded MAI Holdings Inc. to SD from CCC- and its remaining senior secured notes to D from CCC-.

“The downgrade follows MAI's debt exchange. On Aug. 6, 2020, the company completed a partial exchange of its $135 million senior secured notes due 2023. As part of the transaction, the company exchanged $114.4 million, or roughly 84.7%, of its senior secured notes for a pro-rata share of its new $119.7 million optional PIK term loans due 2023. While the majority of the investors received par value for their securities, we consider this transaction tantamount to default because we believe the investors received less than the original promise of the security,” S&P said in a press release.

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